Welcome to Music Business World’s weekly roundup – where we make sure you catch the 5 biggest stories that have made our headlines over the past seven days. MBW’s review is supported by China Travel Servicehelping more than 500 of the world’s best-selling artists maximize their income and reduce touring costs.
Streaming dominated the music industry this week, universal music group Chief Operating Officer and Financial Officer Boyd Muir tell the audience Morgan Stanley We can expect to see the first of a new launch party for super fansSuper high-end‘Subscription tiers will appear in 2025.
at the same time, Amazon Music Revealed this week, it is following up SpotifyThe Footsteps and Bundles audiobook (from which with sound service) into its music subscription. However, unlike Spotify’s bundle, Amazon’s move will not result in lower mechanical royalty payouts for songwriters.
Following outstanding third-quarter earnings, SpotifyThe share price soared to an all-time high, giving the company a market capitalization of $92 billion. co-founder Daniel Ek and Martin Lorenson Take this opportunity to make a fortune and sell it $420 million Only in November stocks.
This windfall was obtained MBW Founder Tim Ingham Thinking about whether it’s time universal music group Sold its stake in Spotify, currently worth US$3 billion.
Ingham noted in a separate column that based on Spotify’s third-quarter results (and fourth-quarter forecast), the company is expected to release US$1.5 billion annual operating profit, and argued that “the premise of the long-standing argument is that Spotify Need to recover profits composer – or indeed any music copyright holder ——In order to survive, now It’s obviously fake”.
at last, Warner Music GroupThird-quarter earnings released this week showed Annual growth of 10.6% The growth of subscription streaming revenue.
Here’s what happened this week…
1) ‘Ultra-premium’ music subscription tiers coming in 2025, plus 3 other things we learned from Universal Music’s Boyd Muir at Morgan Stanley conference
Boyd Muirchief operating officer and financial officer universal music groupexpects “super premium” subscription tiers to begin appearing in 2025—he expects 20% and 30% of paid music subscribers will eventually sign up.
Next year, “you’re going to see the first of these products,” Muir told the audience at the conference. Morgan StanleyThe European Technology, Media and Telecommunications Conference is taking place in Barcelona this week.
“We’re talking to all the platforms about what their premium product might look like. They’re all a little different,” Muir added.
“The types of things we’re talking about are early releases of music, things like major events around music, things like chat rooms[s] Between artists, fans, and collections…”
Juan Mercy/Shutterstock
2) Amazon Music will bundle Audible’s audiobooks – unlike Spotify’s bundling move, the publisher says this will not reduce songwriters’ income
Spotifyopponent, Amazon Musichas become the latest music streaming service to bundle audiobooks with its premium subscription.
In a bid to challenge Spotify’s audiobook service, Amazon Music Unlimited users in the US, UK and Canada can now listen to one audiobook per month through Amazon’s own audiobook service with sound. The retail and tech giant acquires Audible US$300 million 2008.
this State Drug Administration Already responding to the news, the group’s reaction to Amazon Music’s move contrasts with its reaction to Spotify’s move earlier this year.
“We do not expect this new Amazon bundle to reduce songwriter income,” said NMPA President and CEO david israel explain. “Unlike Spotify, Amazon treats music creators as business partners and seeks to reach agreements before the first round of royalty payments…”
Spa/Alami
3) Universal Music Group’s stake in Spotify is currently worth $3 billion. Is it time to sell?
universal music group and its investors have good reason to feel ambivalent SpotifyHockey Stick Value Growth in 2024.
After all, as of the end of 2022, UMG, the world’s largest music rights holder, had a market value three times that of SPOT.
As it stands, however, Spotify is the king of the music industry no matter what, based on public valuations.
This summer, Spotify’s public valuation surpassed UMG’s $92 billion Today’s market capitalization – currently worth about double Global’s valuation on Euronext Amsterdam…
According to its latest third-quarter results, Daniel Ekof green machines are accessed 640 million MAU (monthly active users) for the quarter ended September.
Netflix official user base click rate 282.7 million “Members” of the same period. Additionally, Netflix recently confirmed that it now has 70 million People signed up for the “ad-supported” tier, which launched two years ago.
What’s the biggest difference?
All Netflix users are pay for something…
Joseph Kaltis
5) Warner Music achieved double-digit streaming subscription growth for the fourth consecutive quarter, with third-quarter revenue reaching $1.63 billion.
There are many questions surrounding the growth trajectory of streaming revenue for major music companies this year.
Warner Music Group has always provided one of the most upbeat responses.
On November 21, WMG announced its fourth fiscal quarter (calendar third quarter) results. The company achieved its fourth consecutive quarter of double-digit year-over-year subscription streaming growth.
In calendar third quarter (WMG’s fiscal fourth quarter), the company’s subscription streaming revenue grew Annual growth of 10.6% On a standardized constant currency basis $645 million…
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